Hawke's Bay Herald MONDAY, FEBRUARY 25, 1878.

Hawke's Bay Herald, Volume XXI, Issue 5017, 25 February 1878, Page 2

Hawke's Bay Herald MONDAY, FEBRUARY 25, 1878.

The fact of a compact having been entered into between Russia and Great Britain, to the effect that neither of them are to occupy Gallipoli, encourages the anticipation that there ■will be no immediate collision between them. Russia evidently feels the necessity of paying considerable deference to the representations of the English Foreign Office. The influence of Great Britain counts for something in European affairs still. Had Russia, as it seems that she at first intended, pressed forward to Gallipoli, England could not have allowed her squadron in the Sea of Marmora to be cut off from the fleet at Besika Bay, and would consequently have been forced to fight for the possession of the Peninsula. This was the evident meaning of Lord Derby's despatch to Prince Gortschakoff — though half hidden by its mild diplomatic language — which elicited the satisfactory assurance above referred to. In other respects the prospects are also satisfactory. An increase of less that half-a-million on the army estimates does not look like making preparations for a great war. It is a pity that the compilers of the telegraphic news have not the good sense to send us the price of consols more frequently than they do. Some days ago when things looked threatening, they were down to 92. We should much like to know whether they have recovered or not. Their fluctuations are the safest guide as to the true position of international affairs. In looking to the future now, it is not only the case that we have good ' reason to hope for immunity from the anticipated evils that an Anglo-Russian war would bring in its train, but we have also reason to anticipate that a general revival of trade throughout the world will ensue, as a result of the termination of the unsettled state of things caused by the dread of such a war when impending. We may shortly bid farewell not only to wars, but to the hardly less mischievous rumors of wars ; and in that case, 1878 will yet be a red-letter year in our annals. It cannot be said that we have ceased to advance in prosperity even in the recent past, but should Europe again be pacific, we should advance bj r strides and bounds, where we now advance only by gradual and laborious steps. We await, with great anxiety, the intelligence which may be expected shortly to arrive as to the raising of the loan authorised last session. Should Great Britain herself come into the market with a great war loan, that would make the floating of New Zealand I securities at a rate that would keep the colony's liability for interest within 6 per cent, on the sum borrowed, — the maximum permitted by law — a difficult if not an impossible operation. We are already .so deeply in with the banks, that they would find it requisite, no doubt, to keep us going, all undertakings not absolutely necessary being dropped. In order to do this, however, they would be obliged greatly to restrict their ordinary business, and their customers accordingly would suffer. Hitherto, however, it must be said there has appeared to be little danger of a state of things like this ensuing. Money has not been scarce and New Zealand securities have stood remarkably well in the market. It is probable also that Great Britain would not put a large loan on the market in bad times, but would carry on by means of Treasury bills till things looked better. Still there is an uneasy element of chance in all this, quite sufficient to make us welcome the advent of European peace with scarcely less satisfaction than the inhabitants of those countries that have been the actual scene of warlike operations.